Business Insurance
Business or commercial insurance are wide fields of insurance cover specifically developed to assist the business owner manage risk in all areas of a business.
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Business insurance covers the following aspects of the business:
Car / Fleet Insurance
This insurance covers commercial vehicles for damage caused by an accident or intentional damage, theft cover as well as hijacking, fire and acts of nature i.e. a comprehensive business car insurance package. A cheaper option may be limited car insurance for company cars that provides insurance cover in case of theft, hijacking or fire. Legal liability to third parties may also be covered for causing death or disability to others or their property as a result of a car accident.
Other aspects that may be covered by in the event covered by business car insurance may be car rental that provides the business with a car rental for a period while the insured business vehicle is repaired after an accident or has been stolen or hijacked.
Contents Insurance
Business insurance will insure your business contents against damage or loss caused by impact, wind, lightning, flood, snow, hail, subsidence as well as damage caused by fire or explosion and even malicious damage. Business insurance will also pay for any damage to your business contents following a power surge or power dip.
A business contents insurance package covers damage caused by the bursting of water-supply tanks or pipes and will even pay for the costs of replacing any documents - however, the cost for reproducing the data is not generally included. A separate cover must be taken to insure the business against data loss.
Electronic equipment
Electronic equipment insurance for a business may include the following:
Theft cover may be an optional cover allows you to cover your electronic equipment against any loss or damage caused by theft.
Cover for accidental damage
If you choose this optional cover, you will receive cover for accidental damage to your electrical equipment. You can also choose to have any electronic equipment item (such as a vehicle hoist) covered for accidental damage only.
Comprehensive subsidence cover
Stand-alone cover for your electronic equipment (i.e. licensed software, scanners, printers, audio or visual equipment, or electronic industrial equipment) - you don't need to take out contents insurance first.
Out of the office cover
Insurance cover for items used or removed from the office in the normal course of business may be specified or unspecified. There is usually a limit to the amount insured in the case of unspecified items.
Building insurance
Business buildings can be insured against loss or damage caused by impact, wind, lightning, flood, snow, hail, subsidence as well as damage caused by fire or explosion and malicious damage.
Buildings are also covered against damage caused by power surges, burst or leaking water-supply systems and water pipes. Fire extinguishing services in the event of a fire may also be covered
Accidental damage to water, sewerage, gas, electricity and telephone connections between the building and the public supply or mains can also be covered. Malicious damage may also be covered.
Business building insurance will also pay for loss or damage occurring during construction or alteration, caused by an incident which is a covered event. This includes cover for building materials, fixtures and fittings which you own or for which you are responsible. We'll even pay the extra cost to repair and rebuild the damaged section of your building so that it complies with the public authorities requirements.
Fixtures and fittings which are temporarily removed from the building for the purpose of cleaning, renovation or repair may also be covered for a limited amount.
Stock cover
Stock insurance cover is form of business insurance will cover loss or damage to stock kept inside the building where the damage occurred because of explosion, acts of nature, bursting of geysers and water pipes, malicious damage (not theft), impact or fire.
Optional additions to stock cover are:
Theft cover at full replacement value or on a first-loss basis.
Damage or theft outside the building - for stock designed to operate outside the building
Deterioration of refrigerated stock - where mechanical or electrical breakdown causes the refrigeration unit to be out of order for a specified period.
Subsidence cover - when the downward movement of soil causes structural damage to your property.
Stock-in-Transit cover
Stock-in-transit cover insures your business for loss or damage to your stock while it is being transported to and from the business address by one of your company's vehicles or by any of your employees. This also includes stock which is being loaded on or off the vehicle transporting the stock.
This may include cover if the vehicle carrying the stock is temporarily stored for a limited time.
Finally, you are covered in case of malicious damage (not theft), accidental damage and also where fire, explosion or acts of nature caused loss or damage.
Optional additions to stock-in-transit cove
Loss or damage caused by theft
Damage during theft
Third party carriers - where a third party service provider is responsible for transporting stock
Countries outside South Africa - cover where stock is transported through neighbouring countries, extended cover may need to be applied for.
Money cover
Money cover insures your business against damage or loss of money during normal business hours.
Optional additions to money cover
Money cover - outside your usual business hours
Cover for loss of or damage to money that is contained in a locked safe or strong-room inside the premises.
Money-in-Transit cover
Cover for money that is taken to or from the registered address by an employee or a professional money carrier.
Business Interruption Cover
This is business insurance cover for financial losses suffered due to the interruption of business as a result of a loss following a valid claim on building, contents, electronic equipment or stock.
The financial loss covered relates to monthly fixed expenses payable; monthly operating profit because of a reduction in turnover; or any additional working expenses incurred.
Personal Accident Insurance
Personal Accident Insurance covers the other business partners or employees in case of accidental death or disability, directly caused by an accident. The death or disability has to occur within a fixed period of the accident.
Make sure you check on the excess payable and where cover for the insured event occurs
An optional personal accident cover may exist for temporary total disability.
Business Insurance - Director's personal liability insurance
The new South African Companies Act makes clear the fiduciary duties and responsibilities of company directors and managers.
It also exposes directors to statutory liability in their personal capacities from persons or class of persons who have suffered a loss due to the director contravening a section of the Act.
Personal indemnity insurance should therefore be purchased as part of a company's business insurance cover to protect directors in their personal capacities, and the new Act makes provision for this.
Public Liability Cover
Public Liability Insurance covers damages which you are legally liable to pay following an incident which occurred in the course of or in connection with your business where the business can be held legally liable following the actions of any member, partner, director, principal or employee.
This insurance product covers your business in case of death, illness, or bodily injury as well as accidental loss of or damage to the property of other people.
Additional legal defense insurance covers costs arising from any criminal action brought against the business or any member, director, partner or employee in the course of his occupation with you.
This may also include cover in case of damages resulting from wrongful arrest, assault or defamation as well as any sudden, unforeseen and unintended pollution, contamination or seepage, including the clean-up costs.
Additional options to public liability cover:
- Defective workmanship insurance
- Defective product insurance
- Internal liability insurance
- External liability insurance
- Trustees liability insurance - covers damages derived from wrongful acts by trustees
- Veldfire liability insurance
Industry sectors and professional occupations
Various commercial insurance products have been developed to suit specific industry sectors and occupations.
Examples include:
Guesthouses
Tourism, leisure and entertainment industries
Transport industry
Medical practitioners
Dental practitioners
Agriculture - This business insurance covers crop and asset insurance for the agriculture industry.
This includes cover for:
Crops: Basic insurance (hail and multi-peril crop) and specialised business insurance (fire perils for veld, orchards and sugar cane, grain in storage)
Assets: Basic insurance and specialised insurance, covering: live stock, irrigation systems, goods in transit etc.
The vine industry also enjoys specialised cover.